Veterans' Health Care Promotion Act of 1985

Veterans' Health Care Promotion Act of 1985 - Directs the Administrator of Veterans Affairs to carry out a pilot program to determine the most cost-effective method of acquiring medical facilities for the Veterans Administration (VA) using certain specified methods. Requires the Administrator, not later than January 1, 1987, to enter into contracts to carry out the pilot program. Requires such contracts to be with an appropriate entity to construct and operate a nursing home for the VA.

Requires the Administrator to enter into a contract with an appropriate entity to plan for, design, and construct a medical facility for the VA and to lease or sell such facility to the VA as directed by the Administrator. Directs the Administrator to also acquire two existing medical facilities.

Requires the Administrator to provide the Committees on Veterans' Affairs of the Senate and the House of Representatives an annual report on the administration of the pilot program and a final report promptly after the termination of such program.

Requires the Administrator, within 90 days after enactment of this Act, to report to the same such Committees on: (1) the extent to which the VA furnishes respite care to elderly veterans and disabled veterans; (2) the VA's plans for furnishing such care in the future; and (3) an estimate of the cost of increasing community-based nursing home beds available to the VA by specified percentages.

Limits the amount of working reserve funds available to the VA for FY 1986 for the purchase of an urban medical facility.

Directs the President to include in the budget submitted to the Congress a statement of the estimated expenditures and appropriations required to carry out the pilot program.